Gold is flirting with 23.6% Fib of Trump sell-off

Friday’s sell-off ran out of steam around $1171, thus opening doors to a corrective move in Asia.

At the time of writing, the yellow metal was trading above $1173.44 (23.6% fib retracement of Nov 9 high and Dec 15 low).

Dollar demand strengthened on Friday following the release of the US wage growth numbers. Consequently, the yellow metal dropped from $1183 to $1171 levels.

The US data docket is thinner today. The focus will be on the speech from Fed’s Rosengren and Lockhart and the resulting action in the treasury yields.

Gold Technical Levels

The metal was last seen trading around $1175 levels. A break above $1185 (Jan 5 high) would open the door to $1197.60 (Nov 28 high) and $1200 (zero figure). On the other hand, a break below $1173.44 (23.6% Fib) could yield a sell-off to $1167 (Jan 4 high) and $1157 (10-DMA).